PS dismisses claims counties were not given enough cash
National Treasury Cabinet Secretary Henry Rotich (left), and his Principal Secretary Kamau Thugge, speaks during the launch of M-Akiba at Treasury building in Nairobi on March 23, 2017. Dr Thugge has said counties have been adequately financed. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- Dr Thugge said counties' cash balances at the CBK amounted to Sh33.8 billion as at August 2.
- In the 2017/2018 FY, counties were allocated Sh302 billion in equitable share of national government revenue.
National Treasury Principal Secretary Kamau Thugge has dismissed claims that county governments have not been funded adequately.
According to some reports, the regional governments cannot meet their financial obligations, including payment of July salaries, due to the cash hitch.
CASH BALANCES
In a paid-up advert in local dailies on the status of cash transfers to the 47 units as at August 2, Dr Thugge termed the reports as incorrect.
He said over Sh1 trillion had been transferred to the counties from the national government since the 2013 General Election.
According to Dr Thugge, county governments’ cash balances at the Central Bank of Kenya (CBK) amounted to Sh33.8 billion as at August 2.
"The cumulative county cash balances at the CBK exceed the projected cash disbursements to county governments for the month of July 2017," Dr Thugge said.
EXPENDITURE
He continued: “Most county governments should therefore be able to cover their budgets for critical expenditure items due on July 2017, including salaries and healthcare services.”
More than 80 per cent of these balances are held in County Revenue Fund accounts.
The other Sh6.2 billion is held in other county governments’ accounts at the CBK.
UNSPENT MONEY
Nakuru County led in terms of unspent cash at the CBK with Sh1.79 billion, Mandera (Sh1.646 billion), Kitui (Sh1.52 billion), Kisii (Sh1.55 billion), Makueni (Sh1.42 billion) and Nyeri (Sh1.28 billion).
Others are Baringo (Sh1.12 billion), Kakamega (Sh1.113 billion), Kajiado (Sh1.01 billion) and Kwale (Sh1.17 billion).
Counties with the least unspent amounts include Murang’a (Sh242.36 million), Nairobi (Sh239.2 million), Isiolo (Sh269.89 million), Narok (Sh301.23 million), West Pokot (Sh302.42 million) and Tharaka-Nithi (Sh319.68 million).
In the 2017/2018 financial year, the counties were allocated Sh302 billion in equitable share of national government revenue, following the signing into law of the County Allocation of Revenue Bill early last month.
